Brigham McCown: Urban fracking calls for cost-benefit model

Published: 03 August 2012 09:40 AM

Updated: 03 August 2012 09:40 AM

President Barack Obama recently called natural gas an “ideal fuel.” Yet thanks to the fear and misinformation of radical drilling opponents, we’ve just started debating whether to tap this valuable and important resource in Dallas. While claiming to seek out a compromise, in reality opponents of drilling are seeking a costly and unnecessary outright ban on development. It’s important our council look past dishonest rhetoric and fearmongering and work toward a proposal that protects this important opportunity for our city.

Drilling in urban areas is not a new idea. Oil wells have existed in harmony with the people of Los Angeles for over 100 years. Other cities, such as neighboring Fort Worth, have successfully managed to regulate fracking operations. It is hard to imagine that Dallas might turn its back on a century of progress and shun the very industries that made it what it is today.

Before the local task force issued its recommendations, four City Council members were already on the record as being against drilling in any form or manner. Opponents argue that the city will see no economic gains and that unprecedented new standards are the only way to protect the environment. Both claims are false.

The benefits to drilling are numerous; in fact, Dallas has already received millions of dollars simply for leasing city land for drilling pad sites. Once drilling operations commence, jobs will be created, and the city and citizens alike will begin to reap the benefits that gas royalties and taxes will bring.

The safety record of the industry is clear as well. Keep in mind that only a few days ago the EPA confirmed that fracking sites in Pennsylvania have not contaminated groundwater, despite numerous claims by opponents to the contrary. And the often cited Gasland movie has been debunked by numerous landowners, government officials and experts.

Council members began their review Wednesday of over 100 recommendations from the Dallas Gas Drilling Task Force. While Dallas should regulate fracking operations, the key is to do so in a responsible and educated manner. Excessive “belt and suspender” regulations do not add to safety; they are designed to increase operating costs to the point of chasing away companies that are interested in doing business in Dallas. Instead, local ordinances need to be scientifically based and utilizing cost-benefit modeling.

Unfortunately, many of the recommendations for a more robust and comprehensive regulatory approach are clearly intended to institute a de facto moratorium. Take the task force’s reliance on local cities such as Southlake or Flower Mound as models for Dallas. In each case, the restrictions adopted effectively thwarted investing in those cities.

For example, some have pressed for Southlake’s 1,000-foot setback requirement. The regulation was never intended to prohibit drilling within that distance. It simply required each application within the setback to be vetted by city staff and council through a special use permit. Drilling can in fact be safely conducted with a smaller setback, and under this condition, the majority of citizens and city officials in Southlake remain in favor of drilling. Dallas, therefore, needs to chart its own course as opposed to relying on model regulations from areas where drilling has not yet been successful.

Overly stringent regulations will hinder economic growth and discourage energy companies from financially courting Dallas. Such an outcome is not necessary and would only exacerbate the city’s already-challenging fiscal situation. Dallas has already secured (and most likely spent) $34 million in property leases. If the decision is made to ban fracking, many citizens, including many in lower socioeconomic areas, will lose out on compensation. Even worse, a good legal argument can be made that the city would have to return all money it has already received.

By seeking common ground, Dallas and energy companies can move forward based on mutual trust and understanding. Drilling is not a zero-sum game, and it can be safely accomplished if city leaders are invested in its success. Drilling is not anti-environment and Dallas has the opportunity to show North Texas, the state and the nation that drilling can be a win-win for all involved.

Brigham McCown served as the federal government’s pipeline and hazmat safety chief during the George W. Bush administration. He was most recently part of the Southlake Planning and Zoning Commission and is an attorney with Braumiller Schulz LLP in Dallas. His email address is bmccown@uta-network.com.

Read a different perspective from neighborhood leaders. dallasnews.com/opinion

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